QualityStocks would like to highlight Xtreme Oil & Gas, Inc. (OTCBB: XTOG), a rapidly growing Dallas-based independent energy company engaged in the exploration, development, acquisition, and production of crude oil and natural gas, with operations from properties it owns in Texas, Oklahoma, and Kansas. The company’s oilfield services disposes of saltwater for independent energy producers.
In the company’s news yesterday,
Xtreme Oil & Gas announced its financial results and operational highlights for fiscal year 2011.
“During the previous year Xtreme Oil & Gas achieved numerous milestones,” Willard G. McAndrew III, CEO of Xtreme stated in the press release. “We are pleased to have achieved an operating profit and excited to utilize these gains in fueling growth across both business lines. Management has successfully transitioned ourselves from a start-up to an emerging oil-producing company with several profitable revenue streams.”
For the 12 months ended December 31, 2011, the company reported revenue of $2.4 million compared to 2010 full-year revenue of $89,835. The company attributes the increase to revenues generated from drilling on its saltwater disposal well and the completion of its Five Star project in Texas.
Oil production expenses for 2011 totaled $194,848 compared to expenses of $241,896 reported for the comparable 12 months of 2010. Loss on disposal of properties totaled $48,356 for the year ended December 31, 2011, directly stemming from the company’s attempts to recover damages on the Lionheart property.
The company reported 2011 net losses before tax of $325,088, or $(0.01) per share on a fully diluted basis, compared with net losses of $7.0 million, or $(0.17) per share on a fully diluted basis, for 2010.
Xtreme said it believes it is useful to consider this non-GAAP measure as it excludes significant one-time accounting charges related to the notes and warrants issued during the third quarter of 2011.
McAndrew III noted the company’s efforts to ramp-up production in a couple properties that are expected to generate continued strength, as well as noted several other operational achievements.
“During 2011 we made investments to increase our production at our Texas and Oklahoma properties that will lead to continued growth in 2012. We also progressed in our high-margin saltwater disposal business and have recently completed construction of our saltwater disposal facility. We have received letters of intent to dispose up to 15,000 barrels of saltwater per day from AMEREX and Southern Wellhead,” McAndrew III stated. “Management believes that this business line will provide an additional $7 million in revenue for each well when it reaches full volume. Recent oil production in Texas and Oklahoma combined with anticipated recovery in Kansas and growth of our salt water disposal business strongly positions us for increased earnings, improved margins, and enhanced shareholder value.”
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This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. Risks and uncertainties applicable to the company and its business could cause the company's actual results to differ materially from those indicated in any forward-looking statements.